Before we go any further, let’s review why we need the social media return and ROI again.
You use the return and the ROI to compare the efficiency of marketing campaigns; for an in-house team, you can use these numbers to negotiate budgets with your management; for agencies, you can use estimated numbers toland prospective clients and to retain current clients. The numbers are used in conjunction with social and web metrics to analyze and optimize current and future campaigns.
Last but not the least, a primary reason for using the return and the ROI is social media financial accountability. As social media initiatives become mainstream,executives are holding them to the same accountability as other business initiatives, demanding financial returns and ROI on social media investments.